Appropriate resource use (ARU)—the right care at the right time in the right place—is an important aspect of high-quality, affordable care and a sustainable health care system. IHA has identifed several ARU measures and recognizes physician organizations that are good stewards of finite health care resources while providing high-quality patient care.

Measurement of appropriate resource use—based on inpatient readmissions, inpatient and outpatient utilization, emergency department visits, and generic prescribing—is a key component of the IHA Value Based Pay for Performance program (VBP4P). Through VBP4P, California health plans and physician organizations participate in a shared savings program that rewards physician organizations based on appropriate resource use, adjusted for quality performance, and requiring management of total cost of care.

Appropriate resource use is also integral to IHA's work in the following areas: